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HomeMy WebLinkAboutMINUTES - 02271996 - SD5 TO: BOARD OF SUPERVISORS Contra _.. FROM: Phil Batchelor, County AdministratorCosta & 's County DATE: February 21, 1996 SUBJECT: REFUND OF APPLICABLE PORTION OF INSTALLATION RATES BY TCI CABLEVISION OF EAST COUNTY. SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: ISSUE a written decision ordering TCI Cablevision of East County to refund to subscribers the portion of previously paid installation rates in excess of rates established by the FCC for the period from March,1995 through March, 1996. REQUIRE TCI to submit a refund summary to the Cable TV Administrator within thirty (30) days and to refund the overcharges to subscribers in the form of a one- time rebate within ninety (90) days. APPROVE the all other FCC Forms submitted by TCI Cablevision of Contra Costa, TCI Cablevision of Walnut Creek and TCI Cablevision of East County through March, 1995. FINANCIAL IMPACT: Franchise fees paid on the overcharges collected will need to be reimbursed to TCI systems by the County. The determined amount will be subtracted from TCI's next 1996 franchise fee payment. Based on estimates, this amount should not exceed $5,000. CONTINUED ON ATTACHMENT: ZYES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): &�A ZG� ACTION OF BOARD ON Febraury 27, 1996 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS X I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED February 27, 1996 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF cc: ^Aa SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY Sp•5 BACKGROUND: In December, 1992, the United States Congress passed the Cable Television Consumer Protection Competition Act of 1992 (Cable Act) which authorized local jurisdictions to regulate Cable Television rates of the Basic Tier and associated equipment. As authorized by the Cable Act, Contra Costa County applied for and was certified to regulate basic cable service and related equipment rates effective October 27, 1993. An amendment was adopted to the County's Cable Television Ordinance No. 93-55 on April 26, 1994 to include provision for enforcement of federal rate regulations for basic service. Following the adoption of this amendment, cable operators were notified that the County was certified to regulate basic service charges and had adopted the appropriate regulations to do so. Cable operators were asked to submit required FCC Forms. The Federal Communications Commission (FCC) adopted and revised rate regulations which gave cable operators until August,1994 to submit FCC Form 1200s to the County. TCI Cablevision systems submitted their FCC Form 1200s on or about August 15, 1994. In February and early March, TCI systems submitted FCC Form 1205s to adjust equipment and installation rates. And TCI submitted FCC Forms to adjust basic rates to reflect inflation. As authorized by the FCC rate regulations, the County tolled the review of those rates for ninety (90) days. In addition, pursuant to Section 76.933(c) of the FCC rules, the Board of Supervisors directed TCI systems to keep an accurate account of all amounts collected from rate increases until the review was complete. Staff reviewed all documents provided and concluded that a refund to the maximum permitted rate according to FCC Form 1205 was in order for the TCI Cablevision of East County system. All other rate documents were calculated consistent with FCC guidelines. In accordance with Section 76.942 of the FCC rules TCI Cablevision of East County has been notified of the refund. Pursuant to Section 76.936 of the FCC rules, a written decision in a ratemaking proceeding must be issued whenever the Board of Supervisors disapproves an initial rate for the installation rates and the text of such decision must be made available to the public. 2 SIDS WRITTEN DECISION ORDERING REFUNDS TO SUBSCRIBERS 3 TCI Cablevision of East County having previously submitted to the County FCC Form 1205 dated February 27, 1995 covering rates charged for the regulated equipment and installation costs in unincorporated areas of East Contra Costa County; and The Cable TV Administrator, with assistance from the County Auditor' s Office, having evaluated the Form 1205 and all supporting records submitted by TCI and having prepared a report to the Board; and The County' s time for review of the Form 1205 having been previously extended by Board order, agreement in writing and accounting order, as provided in Section 76 . 933 of the FCC Cable Regulations; and The Cable TV Administrator having determined that TCI has charged more than the maximum permitted rates for the installations for ICI ' s cable system in unincorporated East Contra Costa County, having notified TCI of the apparent overcharges and having afforded TCI an opportunity to comment; and The Cable TV Administrator recommending that the Board issue a written decision, pursuant to Section 76. 936, ordering TCI to refund the excess charges, plus interest, to subscribers in unincorporated East Contra Costa County; and The Board having considered the recommendation of the Cable TV Administrator, all materials submitted by TCI and any comments offered by TCI or the public; NOW, THEREFORE, the Board DECIDES, ORDERS and DETERMINES as follows : The Board DETERMINES that TCI has been given notice and opportunity to comment, as required by Section 76. 942 (a) of the FCC Cable Regulations; and Pursuant to Section 76 . 936 of the FCC Cable Regulations, the Board DECIDES and ORDERS that TCI refund to subscribers within unincorporated East Contra Costa County all amounts received from subscribers during the period from March, 1995 through March, 1996 that exceed the maximum permitted rates for regulated equipment and installation, as listed in the attached pages from FCC Form 1205; and As required by Section 76. 942 (e) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS that the refund shall include 5�. 5 interest computed at applicable rates published by the Internal • Revenue Service for tax refunds and additional tax payments; and The Board FURTHER DECIDES and ORDERS that the overcharges for each cable system be divided equally among current system subscribers and that appropriate refunds be made within ninety (90) days of the date of this decision by means of a one-time credit specifically identified on the subscriber' s bill; and The Board FURTHER DECIDES and ORDERS that TCI deliver to the Cable TV Administrator within thirty (30) days of the date of this decision a detailed refund summary providing a monthly breakdown of the overcharges received during the above-described period; and As required by Section 76. 942 (f) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS that that portion of the license fees that was paid on the total amount of the refunds to subscribers be returned to TCI by means of a deduction from the license fees payable by TCI for fiscal year 1995; and To the extent that the actual rates listed in the attached pages exceed the maximum permitted rates, the Board DISAPPROVES such excess; and As required by Section 76.936 (b) of the FCC Cable Regulations, the Board FURTHER DECIDES and ORDERS that public notice be given of this decision by posting the attached notice in the County Administration Building and that the text of this decision be released upon request to any interested member of the public.